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Port Angeles School District sells $30 million in bonds; underwriter reports strong investor demand
Summary
The district sold $30 million in unlimited tax general obligation bonds; the underwriter DA Davidson reported broad institutional orders, a true interest cost of 4.303% and local investor participation.
Port Angeles School District officials told the board the district sold $30,000,000 in unlimited tax general obligation bonds to finance capital projects, and the underwriter reported broad investor demand and a true interest cost of 4.303 percent. DA Davidson, the district’s underwriter, said the order period drew 59 orders from eight institutional investors and local branch investments totaling $590,000.
A statement read to the board by district staff, quoting DA Davidson, said one investor placed orders totaling $22,000,000 and two investors each placed orders in excess of $10,000,000. After allocations, the underwriter reported a par amount of $29,265,000 and proceeds of $30,000,000; the premium on the sale was described as approximately $800,000, which the underwriter said reduces net cost to taxpayers. District staff said proceeds will be deposited into the capital projects fund on closing, scheduled for June 5.
District leadership and the underwriter described the bond proceeds as intended to support a new elementary school, districtwide safety and security improvements, and renovations at Fort Andrews High School, and earlier in the meeting staff said bond proceeds will also help address soft costs tied to Port Angeles High School and Franklin Elementary School projects. The underwriter’s letter acknowledged strong local support and framed the sale as timed to match capital needs rather than issuing the full voter authorization at once.
The district reported a par amount of $29,265,000, a true interest cost of 4.303%, and the $30,000,000 in proceeds will close June 5 with proceeds deposited in the capital projects fund. The underwriter also noted that $590,000 in orders came from local DA Davidson wealth management branches. District staff and the underwriter thanked the superintendent, incoming superintendent and business office staff for completing the transaction.
Board members did not take a new vote at the meeting; staff presented the sale results and a letter from DA Davidson that the board entered into the record. Officials said the district will phase bond sales to align with construction schedules and to limit taxpayer interest expense.
